Unit 1 What Is Economics
1.1 An Overview of Economics2
1.1.1 Branches of Economics2
1.1.2 Core Principles of Economics .4
1.13 Types of Economic Systems5
1.2 An Overview of Microeconomics 6
1.2.1 Key Concepts of Microeconomics..6
1.2.2 Core Theories of Microeconomics7
1.3 An Overview of Macroeconomics9
1.3.1 Key Concepts of Macroeconomics9
1.3.2 Core Theories of Macroeconomics 10
1.4 Positive Economics vs Normative Economics 1
1.4.1 Positive Economics11
1.4.2 Normative Economics12
Unit 2 An Overview of Traditional Economic Thought in the West and China
2.1 An Overview of Traditional Economic Thought in the West18
2.1.1 Economic Thought in Ancient Greece and Rome18
2.1.2 Economic Thought in the Middle Ages19
2.2 An Overview of Traditional Economic Thought in China2
2.2.1 Economic Thought Before the 6th Century22
2.2.2 Economic Thought from the 7th to the 14th Century24
Unit 3 Demand and Supply
3.1 The Law of Demand and Supply30
3.1.1 Definition of Demand30
3.1.2 Demand Curve31
3.1.3 Definition of Supply34
3.1.4 Supply Curve35
3.2 Market Equilibrium.38
3.2.1 Equilibrium and Equilibrium Price 38
3.2.2 Change of Equilibiun 40
3.3 Elasticity of Demand and Supply 41
3.3.1 The Elasticity of Demand 41
3.3.2 The Elasticity of Supply43
Unit 4 Consumption and Production
4.1 Utility and Consumer Surplus48
4.1.1 Total Utility and Marginal Utility48
4.1.2 Consumer Surplus49
4.2 Consumer Behavior Theories..51
4.2.1 Consumer Equilibrium51
4.2.2 Income Effect and Substitution Effect53
4.3 Cost， Revenue and Profit54
4.3.1 Cost and Producer Surplus.54
4.3.2 Revenue and Profit57
4.4 Producers and Production Theory58
4.4.1 Producers and Production Functions58
4.4.2 Productivity and Marginal Effects59
Unit 5 Market Competition
5.1 Market and Market Structure..66
5.2 Competition and Monopoly67
5.2.1 Perfectly Competitive Market67
5.2.2 Monopolistic Market 71
5.3 Uncertainty and Game Theory74
5.3.1 Uncertainty and Its Impact on the Market74
5.3.2 Game Theory and the Prisoners Dilemma75
5.4 Market Failures and Public Goods7
5.4.1 Pareto Efficiency and Market Failures77
5.4.2 Externalities and Public Goods78
Unit 6 Factor Market
6.1 Factor Market 86
6.1.1 Factors of Production and Factor Market86
6.1.2 Perfectly Competitive and Imperfectly Competitive Factor Markets88
6.2 Labor Market89
6.2.1 Demand and Supply of Labor89
6.2.2 The Price of Labor92
6.3 Capital Market ..94
63.1 Demand and Supply of Capital94
6.3.2 The Price of Capital 95
6.4 Land Market.96
6.4.1 Features of Land 96
6.4.2 The Price of Land 97
Unit 7 National Economy
7.1 GDP and GNP102
7，1.1 Definitions of GDP and GNP..102
7.1.2 Calculations of GDP and GNP103
7.2 National Income 104
7.2.1 Calculation of National Income.105
7.2.2 Distribution of National Income105
7.2.3 Significance of National Income..106
7.3 Aggregate Demand and Aggregate Supply107
7.3.1 Aggregate Demand107
7.3.2 Aggregate Supply .109
7.3.3 The Aggregate Demand-Aggregate Supply Model11
Unit 8 Economic Growth and the Business Cycle
8.1 Inflation118
8.1.1 Inflation and Its Causes118
8.1.2 Impacts of Inflation120
8.2 Unemployment121
8.2.1 Unemployment and Its Classification .121
8.2.2 Impacts of Unemployment122
8.3 Economic Growth123
8.3.1 Significance of Economic Growth123
8.3.2 Modem Economic Growth Theories.124
8.4 The Business Cycle126
8.4.1 The Business Cycle and Its Stages.126
8.4.2 Causes of the Business Cycle128
Unit 9 Macroeconomic Policy
9.1 The Role of Government in the Economy 134
9.1.1 Market Regulation..134
9.1.2 Provision of Public Goods and Services .135
9.1.3 Economic Stabilization Through Macroeconomic Policies..137
9.2 Monetary Policy 138
9.2.1 Monetary Policy and Its Functions138
9.2.2 Clasification of Monetary Policy and Its Tools139
9.2.3 Challenges of Monetary Policy..141
9.3 Fiscal Policy 142
9.3.1 Fiscal Policy and Its Functions.143
9.3.2 Classification of Fiscal Policy and Its Tools..144
9.3.3 Challenges of Fiscal Policy 145
Unit 10 International Economy
10.1 Absolute Advantage and Comparative Advantage152
10.1.1 Absolute Advantage152
10.1.2 Comparative Advantage153
10.13 Comparative Advantage and International Trade154
10.2 International Economy and Globalization 155
10.2.1 Economic Interdependence155
10.2.2 Evolution of Globalization 156
10.3 Tariffs158
10.3.1 Definition of Tariff158
10.3.2 The Economic Effects of Tariffs.159
10.3.3 The Welfare Effects of Tariffs 160
Unit 11 Money and Interest Rates165
11.1 Money .166
11.1.1 Definition of Money .166
11.1.2 Origins of Money.167
11.1.3 Function and Nature of Money168
11.1.4 The Monetary System170
11.2 Interest Rates171
11.2.1 Definition of Interest Rates171
11.2.2 Types of Interest Rates and Influential Factors.172
Unit 12 Financial Institutions and Financial Markets
12.1 Financial Institutions 180
12.1.1 Banking Institutions.180
12.1.2 Non-banking Financial Institutions184
12.2 Financial Markets 186
12.2.1 Money Markets and Capital Markets .186
12.2.2 Primary Markets and Secondary Markets ..187
Unit 13 International Payments
13.1 Foreign Exchange and Exchange Rate.194
13.1.1 Foreign Exchange194
13.1.2 Exchange Rate195
13.2 International Balance of Payments 199
13.2.1 Definition of International Balance of Payments 99
13.2.2 Imbalance of International Payments .200
13.2.3 Adjustment of the Imbalance of Payments202
Unit 14 Financial Risk， Crisis， and Supervision207
14.1 Financial Risk208
14.1.1 Overview of Financial Risk208
14.1.2 Management of Financial Risk ..210
14.2 Financial Crisis211
14.2.1 Overview of Financial Crisis.211
14.2.2 Impacts of Financial Crisis213
14.3 Financial Supervision 215
14.3.1 Definition of Financial Supervision.215
14.3.2 Financial Regulation System216
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